LOS ANGELES – October 5, 2021 – (Newswire.com)
Signature loans, also known as “good faith” loans, are a good option when borrowers need cash quickly. These loans often only require the name, income, credit history and signature of the borrower to apply and get approval.
If a borrower is looking for a loan that they can get quickly without posting collateral, a signature loan may be a good choice. Here’s how signature loans work and how borrowers can apply for one.
How Do Signature Loans Work?
Signature loans are unsecured personal loans that do not require borrowers to use an asset, such as their home or car, as collateral. Signature loans often come in the form of installment loans, which give borrowers a lump sum that they will repay in fixed monthly installments. These loans offer the borrower a fixed amount, an interest rate and a repayment schedule.
Borrowers can use signature loans for a variety of purposes including:
- Emergency expenses
- Home renovations
- Big purchases
- Debt consolidation or refinancing
Lenders look at information such as income, credit score and history, employment history, and current debts to decide whether or not to approve borrowers. Many lenders have less stringent requirements, so borrowers can get approval for a signature loan with a poor or fair credit rating.
Apply for a signature loan
Applying for a signature loan is quick and easy. Borrowers will need to have some basic information, including:
- Contact details (email address, phone number)
- Social Security number
- Proof of income (pay stubs, bank statements, tax returns or profit and loss statements for the self-employed)
If the lender conducts serious credit checks, the borrower may also need to authorize a credit check.
Here are the steps to apply for a signature loan:
- Gather all the information and documents needed to apply.
- Apply for a signature loan.
- If approved, review the conditions.
- Accept the loan terms by signing the documents.
- Receive the funds.
Many lenders who offer signature loans will give borrowers the funds quickly after they have been approved, sometimes on the same day of application or within 24 hours.
The bottom line
Signature loans can be a great option for borrowers who are in need of quick cash. Many of these loans only require a little basic information and take a few minutes to apply, and borrowers may be able to receive their funds on the same day. With that said, borrowers should always review their monthly budget to make sure they can accept a signature loan before completing an application.
Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.
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Advance America: How to Apply for a Signature Loan